𝐂𝐡𝐫𝐢𝐬𝐭𝐦𝐚𝐬 𝐆𝐢𝐟𝐭𝐬 𝐅𝐨𝐫 𝐘𝐨𝐮𝐫 𝐒𝐭𝐚𝐟𝐟

There are many ways to reward your loyal staff, at Christmas time you might be thinking about a gift. The tax consideration for buying a staff gift is more complicated, as it involves Fringe Benefits Tax.

The two most important aspects to consider to maximise your tax deductions are: 

𝟏) The cost of the gift needs to be less than $300 GST inclusive for each staff member and: 

𝟐) The gift should be a “Non-Entertainment” gift. If you meet these two parameters, you will get a full tax deduction for the expense, and claim the GST credits and it has no FBT consequences.

If you spend above $300 on a “Non-Entertainment” gift, FBT will be applicable.

If you buy an “Entertainment” gift under $300, there is no tax deduction and no GST credit.

If you buy an “Entertainment” gift over $300, FBT will be applicable

𝐒𝐨𝐦𝐞 𝐞𝐱𝐚𝐦𝐩𝐥𝐞𝐬 𝐨𝐟 “𝐄𝐧𝐭𝐞𝐫𝐭𝐚𝐢𝐧𝐦𝐞𝐧𝐭” 𝐠𝐢𝐟𝐭𝐬 𝐚𝐫𝐞:

Theatre tickets, movie tickets, sporting events tickets, hired entertainers, flights and holiday accommodation, etc

𝐒𝐨𝐦𝐞 𝐞𝐱𝐚𝐦𝐩𝐥𝐞𝐬 𝐨𝐟 “𝐍𝐨𝐧-𝐄𝐧𝐭𝐞𝐫𝐭𝐚𝐢𝐧𝐦𝐞𝐧𝐭” 𝐠𝐢𝐟𝐭𝐬 𝐚𝐫𝐞: 

Flowers, electrical goods; e.g. TV, bottled spirits and beer, Christmas hampers, gift vouchers,etc

To maximise your tax deductions, try to find “Non-Entertainment” gifts under $300 for your staff. If you are unsure about a particular item, please feel free to ask.